FTX Bankruptcy Judge Rejects US Trustee’s Plea for Independent Assessor Bitcoin News

The judge supervising the FTX Chapter case has declined the US Trustee’s request to carry on proceedings by appointing an impartial assessor. The determination comes after Judge John Dorsey postponed the ruling last week, citing concerns that the assessor could cost creditors millions of dollars.

The court eventually overturned the argument of the US trustee for an independent assessor

In the most recent filing in the FTX Chapter Docket. Judge John Dorsey overruled the US Trustee’s request to appoint an impartial assessor. The current team, which is led by FTX CEO, has been deemed by Dorsey to be “highly qualified” to handle chapter proceedings on their own. The US Trustee’s plea to hire an independent assessor was thus denied by the ruling. This was said to be a mandated requirement by Congress.

However, the judge presiding the FTX case was burdened by the fact that he “had no doubt that appointing an assessor would not be in the best interest of creditors.” According to estimates, the current administration suggested that bills for an impartial assessor could reach between $90 million-$100 million. “Every dollar spent on filing fees in these cases is $1 less for creditors,” Dorsey agreed during the hearing that an assessor might be too expensive.

Since December 1, 2022: An attorney for the US Trustee, a department in the United States Department of Justice (DOJ), has been seeking to nominate an assessor in the FTX matter within the chapter court in Delaware. During the argument, the representative from the Receiver argued that an independent assessor was mandated by law by Congress and was beyond Dorsey’s authority.

The four bipartisan US senators supported the argument of receiver and demanded an independent assessor. However, the Delaware Chapter judge’s ruling demonstrates that the court’s authority has overruled the US government’s request.

What do you think about the US’s refusal to accept the ruling? Trustee’s in the FTX case, request an independent assessor. Let us know via the comment section.